HL Deb 16 December 1947 vol 153 cc237-8
LORD BROUGHSHANE

My Lords, I beg to ask the Government the question standing in my name on the Order Paper.

The question was as follows:

[To ask His Majesty's Government if they will state the statutory authority which enables Purchase Tax to be charged on goods which have been purchased and paid for prior to the imposition of the tax and are awaiting delivery to the purchaser.]

THE CHANCELLOR OF THE DUCHY OF LANCASTER (LORD PAKENHAM)

My Lords, when Purchase Tax is imposed, or the rate of tax is altered, on any class of goods the relative Finance Bill provides, as on the present occasion, that the new tax or the new rate of tax, as the case may be, shall apply if the goods are delivered under a chargeable purchase on or after the operative date of the change, notwithstanding that the purchase may have been made before that date. Section 20 (3) of the Finance (No. 2) Act, 1940, provides in similar terms in cases where the tax is imposed or the rate changed by Treasury Order made under that section.

LORD BROUGHSHANE

Is the noble Lord aware that the section to which he has referred does not enable Purchase Tax to be claimed where goods, have been paid for and are the property of the purchaser? The purchaser is entitled to sue the vendor for them if he does not deliver them. It is clearly impossible that Purchase Tax can be claimed in respect of goods which no longer belong to the original vendor and did not belong to him when the tax was imposed. I am not aware of any Finance Bill which gives power to levy Purchase Tax on goods already purchased.

LORD PAKENHAM

I would respectfully suggest to the noble Lord that if he wishes to debate this matter he should raise it when I introduce the Finance Bill on Thursday. I would repeat that we are simply continuing the usual practice and that, with our well-known liking for tradition on these Benches, we cannot accept the revolutionary proposal of the noble Lord.

LORD BROUGHSHANE

How can it be revolutionary to say that Purchase Tax cannot be levied on goods which have already been purchased and the ownership of which has passed to the purchaser?

LORD PAKENHAM

The noble Lord is misinformed in certain respects, but I suggest that we should return to it again with equal gusto on Thursday.